Income Tax Slabs and Rates

The Income Tax rates in India are different for different categories and status of tax payers. The Income Tax rates for Individuals, Senior Citizen and Very Senior Citizens, HUFs, AOP, BOI and Co-operatives are progressive in nature, where a lower tax rate is imposed on low-income earners compared to those with higher income, making it based on the taxpayer's ability to pay. That means it takes a larger percentage from high-income earners than it does from low-income earners. Individuals, HUFs, AOP, BOI and Co-operatives are taxed as per different slab rates ( varies from Nil to 30% ). However, Firms and Companies are taxed on fixed rate basis, except for certain specified incomes.

When income increases a specified limit(s), Surcharge on Income Tax is charged at specified Surcharge rate on Income Tax. The specified limit(s) for charging Surcharge and Surcharge rates are different for different categories of tax payers.

10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Very Senior Citizen (Individual resident born before 1st April 1939)

Income Slab

Income Tax

Upto ₹ 5,00,000/-

NIL

Above ₹ 5,00,000/- to ₹ 10,00,000/-

20% of (taxable income - 5,00,000).

Above ₹ 10,00,000/-

₹ 100,000/- + 30% of (taxable income - 10,00,000)

Surcharge ( subject to Marginal Relief )

10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Any NRI or HUF or AOP or BOI or AJP

Income Slab

Income Tax

Upto ₹ 2,50,000/-

NIL

Above ₹ 2,50,000/- to ₹ 5,00,000/-

5% of (taxable income - 2,50,000).

Above ₹ 5,00,000/- to ₹ 10,00,000/-

₹ 12,500/- + 20% of (taxable income - 5,00,000).

Above ₹ 10,00,000/-

₹ 112,500/- + 30% (taxable income - 10,00,000)

Surcharge ( subject to Marginal Relief )

10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Co-operative Society

Income Slab

Income Tax

Upto ₹ 10,000/-

10% of the income.

Above ₹ 10,000/- to ₹ 20,000/-

₹ 1,000/- + 20% of (taxable income - 10,000)

Above ₹ 20,000/-

₹ 3,000/- + 30% of (taxable income - 20,000)

Surcharge ( subject to Marginal Relief )

12% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Firm

Income Tax

30% of taxable income.

Surcharge ( subject to Marginal Relief )

12% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Local Authority

Income Tax

30% of taxable income.

Surcharge ( subject to Marginal Relief )

12% of Income Tax, in case taxable income is above ₹ 1 crore.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Domestic Company (1) - Turnover upto ₹ 250 crores

Income Tax

25% of taxable income.

Surcharge ( subject to Marginal Relief )

7% of income tax, in case taxable income is above ₹ 1 crore.12% of income tax, in case taxable income is above ₹ 10 crores.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Domestic Company (2) - Turnover exceeding ₹ 250 crores

Income Tax

30% of taxable income.

Surcharge ( subject to Marginal Relief )

7% of income tax, in case taxable income is above ₹ 1 crore.12% of income tax, in case taxable income is above ₹ 10 crores.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Company other than a Domestic Company

Income

Income Tax Rate

Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government

50%

Any other income

40%

Surcharge ( subject to Marginal Relief )

2% of income tax, in case taxable income is above ₹ 1 crore.
5% of income tax, in case taxable income is above ₹ 10 crores.

Health & Education Cess

4% of (Income Tax + Surcharge).

▼Marginal Relief on Surcharge

In case taxable income exceeds ₹ 50 lacs / ₹ 1 crore Surcharge is payable on income tax at applicable rates. If increase in 'Income Tax + Surcharge' is more than the increase income over ₹ 50 lacs / ₹ 1 crore, the 'Surcharge' is reduced by such amount so that the 'Income Tax + Surcharge' become equal to increase in 'Total Taxable Income' over Rs. 50 lacs / 1 Crore respectively. The amount so reduced from 'Surcharge' is 'Marginal Relief on Surcharge'.

Example 1

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 50,01,000/-

1

Income Tax on income of ₹ 50,01,000/-

13,12,800

2

Surcharge on income of ₹ 50,01,000/-

1,31,280

3

Income Tax + Surcharge on income of ₹ 50,01,000/- (1 + 2)

14,44,080

4

Income Tax on income of ₹ 50 lacs

13,12,500

5

Surcharge on income of ₹ 50 lacs

0

6

Income Tax + Surcharge on income of ₹ 50 lacs (4 + 5)

13,12,500

7

Increase income over ₹ 50 lacs

1000

8

Income Tax + Surcharge on income of ₹ 50 lacs + Increase income over ₹ 50 lacs

13,13,500

9

Income Tax and Surcharge payable on income of ₹ 50,01,000/- (Lower of 3 and 8 )

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